Capio AB (publ) Interim Report January – September 2016

Regulatory News:

Capio AB (STO:CAPIO)

July – September 2016

· Net sales MSEK 3,168 (3,055). Organic sales growth 2.6% (2.3) and total sales growth 3.7% (1.1)

· Operating result (EBITDA)¹ MSEK 200 (188) and margin 6.3% (6.2). EBITDA increased by 6.4%

· Operating result (EBITA)¹ MSEK 94 (86) and margin 3.0% (2.8). EBITA increased by 9.3%

· Operating result (EBIT) MSEK 72 (67) and margin 2.3% (2.2). EBIT increased by 7.5%

· Profit for the period¹ MSEK 34 (29) and adjusted profit for the period¹ MSEK 46 (45). Earnings per share after dilution² SEK 0.24 (0.20) and adjusted earnings per share after dilution² SEK 0.33 (0.32)

January – September 2016

· Net sales MSEK 10,344 (9,974). Organic sales growth 3.5% (2.9) and total sales growth 3.7% (2.3)

· Operating result (EBITDA)¹ MSEK 772 (716) and margin 7.5% (7.2). EBITDA increased by 7.8%

· Operating result (EBITA)¹ MSEK 461 (413) and margin 4.5% (4.1). EBITA increased by 11.6%

· Operating result (EBIT) MSEK 405 (295) and margin 3.9% (3.0). EBIT increased by 37.3%

· Profit for the period¹ MSEK 269 (71) and adjusted profit for the period¹ MSEK 306 (199). Earnings per share after dilution² SEK 1.90 (0.53) and adjusted earnings per share after dilution² SEK 2.16 (1.52)

¹ Refer to page 27 for definitions of EBITDA and EBITA. Profit and adjusted profit refer to profit attributable to parent company shareholders. ² Refer to note 2 for calculations of earnings per share and adjusted earnings per share (before and after dilution).

CEO comments:

"Continued positive development in line with our plans – in the quarter France fully compensated for the price decrease.”

· Organic sales growth of 3% and EBITA growth of 9% in the seasonally weak third quarter

· Continued positive development in Nordic from higher volumes and productivity improvements

· France improving further during the third quarter resulting in a flat operating margin development (EBITA) – on track for a flat margin development for the full year 2016

· Germany impacted by lower inpatient volumes in the quarter resulting in a flat result development

Nordic continued to show solid net sales and result develop­ment in line with our plans. Organic sales growth in the quarter was 3% and for the first nine months it was just below 4%. Operating margin (EBITA) improved both in the quarter and in the first nine months, compared to the same periods 2015.

The productivity increase in Proximity care in Sweden is continuing in line with plan. Capio S:t Göran’s hospital in Stock­holm continued to enjoy close to double digit sales growth as a consequence of the transfer of patient volumes in connection with the prepar­ation of the opening of the down-sized New Karolinska Hospital. The new and larger accident and emerg­ency department (A&E) at Capio S:t Göran that was opened in late April contributed to the continued good growth. Specialist care is successfully growing the geriatric business in Stockholm and is continuing the work to streamline its offer in the free healthcare choice market.

France has in the third quarter fully compensated for the Government’s price cut of over 2% (from March 2016). The margin development has improved quarter over quarter in 2016 as effects from actions are becoming visible in the result. Actions to further improve the development will continue in the fourth quarter. These actions contain reorganization of employees, more efficient procurement, continuous improvements in a few remaining lagging units, and further development of med­ical specialties. The remaining margin gap compared with last year is expected to be closed during the remainder of the year, which will create a good starting point for next year’s work to continue to improve margins in France.

It is encouraging to see that the growth in patient volumes continued to be very strong in France in the third quarter; 6.1%. This reflects the attractiveness of our focus on Modern Medic­ine and the continuous shift from in- to outpatient treatments. It can be noted that doctors in Capio Clinique du Tonkin Heart Clinic in Lyon performed the second ever daycare TAVI operation (cardiac valve insertion) in France during the quarter.

Germany had a weaker result development than planned in the third quarter as the start up after the summer period was slower than normal. Development in the first nine months was still strong and the business remains positioned for continued improvements.

The focus going forward is of course on securing the ongoing strong trends in the current businesses. Our focus on e-health for easier patient access, work flow improvements, and standardized medical processes continues. In parallel, we are continuing to actively search for interesting acquisitions to broaden our presence and medical offering.

Thomas Berglund

President and CEO

Presentation of the interim report

Investors, analysts and media are invited to participate in a telephone conference on November 3, 2016 at 09.30 am (CET). President and CEO Thomas Berglund and CFO Olof Bengtsson will present the report and answer questions. The telephone conference will be audio casted live on www.capio.com. To participate in the telephone conference, please register at www.capio.com and dial in five minutes prior to the start of the conference call.

Sweden: +46 8 566 426 91

UK: +44 203 008 98 07

US: +1 855 831 59 47

Finland: +35 898 171 04 93

France: +33 170 75 07 12

Prior to the start of the telephone conference, presentation slides will be available at www.capio.com.

A recorded version of the audio cast will be available at www.capio.com during the afternoon (CET).

Financial calendar

February 10, 2017, Full year report January – December 2016 M

ay 3, 2017, Interim report January – March 2017

May 3, 2017, Annual General Meeting 2017

July 21, 2017, Interim report January – June 2017

October 27, 2017, Interim report January – September 2017

Capio’s annual general meeting will be held on Wednesday, May 3, 2017 in Gothenburg, Sweden. The Capio Annual Report 2016 will be available on www.capio.com in April 2017.

For further information regarding Capio’s IR activities, refer to www.capio.com

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